FMC Technologies Reports Increased Revenue in 2Q 2012 (USA)

FMC Technologies, Inc. reported second quarter 2012 revenue of $1.5 billion, up 22 percent from the prior-year quarter. Diluted earnings per share were $0.46 compared to $0.39 in the prior-year quarter.

Total inbound orders were $1.4 billion and included $878.2 million in Subsea Technologies orders. Backlog for the Company was $5.2 billion, including Subsea Technologies backlog of $4.3 billion.

“We saw improvement in Subsea Technologies’ margin this quarter and are confident we will continue to see margins increase during the remainder of 2012,” said John Gremp, Chairman, President and CEO of FMC Technologies. “The robust outlook for subsea continues as customers move forward with developing their significant offshore portfolios. Our Surface Technologies segment had another record earnings quarter on the strength of our growing international surface wellhead business and the execution of our backlog in our fluid control business.”

“Looking at the second half of 2012, we are narrowing our full year diluted earnings per share range to $2.10 to $2.20.”

Review of Operations — Second Quarter 2012

– Subsea Technologies’ second quarter revenue was $945.8 million, up 18 percent from the prior-year quarter. Subsea Technologies’ operating profit improved to $109.7 million due to higher volume and improved execution. This operating profit includes a $13.2 million net benefit associated with the Schilling Robotics acquisition.

Subsea Technologies’ inbound orders for the second quarter were $878.2 million and backlog was $4.3 billion.

– Surface Technologies’ second quarter revenue of $413.8 million was 33 percent higher than the prior-year quarter. Surface Technologies had record operating profit of $84.2 million in the second quarter, up 49 percent from the prior-year quarter. Both increases were driven by continued strength in fluid control and higher volumes in surface wellhead.

Surface Technologies’ inbound orders were $365.7 million in the second quarter and backlog for the segment finished the quarter at $573.6 million.

– Energy Infrastructure’s second quarter revenue was $139.4 million, up 16 percent from the prior-year quarter. This increase came primarily from increased sales in measurement solutions and material handling.

Energy Infrastructure had operating profit of $9.1 million in the second quarter, down 15 percent from the prior-year driven by lower volume in loading systems due to timing of inbound.

Energy Infrastructure’s inbound orders for the second quarter were $146.4 million and backlog was $284.7 million.

– Corporate expense in the second quarter was $10.4 million, a decrease of $0.2 million from the prior-year quarter. Other revenue and other expense, net, was $29.7 million, an increase of $27.7 million from the prior-year quarter. This was due largely to an increase of $12.6 million related to the potential earn-out associated with the acquisition of Multi Phase Meters and $4.0 million in foreign exchange net loss in 2012 compared to $4.0 million in foreign exchange net gain in 2011.

The Company ended the quarter with net debt of $940.9 million. Net interest expense was $6.4 million in the quarter.

The Company repurchased 511,000 shares of common stock in the quarter, at an average cost of $40.07 per share.

Depreciation and amortization for the second quarter was $35.4 million, up $5.3 million from the sequential quarter. Capital expenditures for the second quarter were $99.3 million.

The Company recorded an effective tax rate of 28.5 percent for the second quarter.

FMC Technologies reported second quarter diluted earnings per share of $0.46, up 18 percent over the prior year quarter.

Total inbound orders of $1.4 billion in the second quarter included $878.2 million in Subsea Technologies orders. The Company’s backlog stands at $5.2 billion, including Subsea Technologies backlog of $4.3 billion.

Subsea revenue is expected to be approximately $4.0 billion for the full year.

The Company narrowed its guidance for 2012 diluted earnings per share to a range of $2.10 to $2.20, reflecting a year-over-year increase of 28 to 34 percent.

FMC Technologies, Inc. is a leading global provider of technology solutions for the energy industry. Named by FORTUNE® Magazine as the World’s Most Admired Oil and Gas Equipment, Service Company in 2012, the Company has approximately 16,100 employees and operates 27 production facilities in 16 countries. FMC Technologies designs, manufactures and services technologically sophisticated systems and products such as subsea production and processing systems, surface wellhead systems, high pressure fluid control equipment, measurement solutions, and marine loading systems for the oil and gas industry.

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Subsea World News Staff , July 25, 2012; Image: FMC Technologies